What’s going on:
WeWork experienced an over 9.15% drop in its share price compared to last week, with the company’s shares closing at $0.22 on Tuesday, and then $0.2133 on Wednesday. Despite this decline, there are consensus analysts that believe the company has the potential for a rally.
Analysts monitoring the company’s progress have provided a revenue growth estimate of $850.13 million, with a low of $839 million and a high of $872.7 million, according to Stock Register. The company is reportedly expected to achieve a yearly revenue forecast of $3.45 billion in 2023, reflecting a 6.30% increase compared to the previous year’s reported figures. Stock Register reports that two consensus analysts have rated WeWork as a hold and two others rate it as a buy, presenting optimistic views of the company’s future.
Why it matters:
The fluctuation in WeWork’s share price reflects investor sentiments regarding the company’s financial stability and growth prospects. Recently, shareholders approved a reverse stock split as WeWork aims to make a climb, not only to recover financially, but also to avoid a potential delisting from the New York Stock Exchange.
If WeWork’s share price manages to recover and grow, it would likely impact the coworking industry at large by contributing to the increase in demand for remote and hybrid work models in cities where the company has a presence.
How it’ll impact the future:
As one of the major companies in the coworking industry, WeWork’s successes or failures impact the rest of the industry. If WeWork is successful in its efforts, it could lead to an expansion in the availability of coworking spaces by providing more options for workers seeking flexibility and collaboration opportunities. Additionally, a stable and growing WeWork would likely increase competition in the industry, which in turn may foster more innovation among businesses and entrepreneurs operating in the space.